Foord International Feeder Fund
CLOSED TO NEW INVESTMENT
For conservative, absolute return-oriented investors in global markets
The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation.
|Year||Fund Return %||Benchmark Return %||SA Inflation %|
|2006 (from 01/Mar)||24.9||28.4||5.0|
|2020 (to 30/Apr)||27.3||16.1||1.6|
To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.
Longer than three years.
1 March 2006
R50 000 lump sum or R1 000 per month
The portfolio may only invest in cash and one other collective investment scheme.
The Foord International Fund, in which the fund invests, does not distribute its income.
Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.
Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.
|Risk of loss||
Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.
|Security description||Asset class||Market||Portfolio weight %|
|Nagacorp 9.375% 21/05/2021||Bond||SG||6.2|
|ETFS Physical Gold||Commodity||GB||6.2|
|US Treasury 2.75% 30/11/2020||Bond||US||5.0|
|Roche Holding AG||Equity||CH||4.6|
|CVS Health Corp||Equity||US||4.0|
Monthly Commentary – April 2020
- Developed market (+10.9%) and US (+13.1%) equities surged, with the S&P 500 achieving its fastest single-month rally since October 1974 – on coordinated and robust global monetary and fiscal policy responses and early indications of progress on potential COVID-19 therapies
- Emerging markets (+9.2%) gained, led by India (+16.1%) and Russia (+11.5%) – India’s markets were buoyed by a $23 billion COVID-19 stimulus package while Russian markets were aided by the bottoming and subsequent rise in the oil price
- Leading precious metals miner Wheaton Precious Metals (+37.2%) contributed the most to fund performance driven by increases in gold (+6.4%) and silver (+10.1%) – the fund’s derivative hedges detracted in the rapidly-rising market
- Despite lower market volatility and the global equity rally, developed market bond yields including the US 10-year made new lows – bond investors continue their push into relative safe-havens amid economic uncertainty
- The US dollar weakened marginally against the British pound (+1.7%) and Japanese yen (+1.0%) – after a period of strength
- Cyclical industrial commodities including oil (+11.1%) and copper (+5.1%) rebounded – as global stimulus buoyed investor sentiment
- The fund retains the S&P 500 hedges given the continued global economic uncertainty resulting from the ongoing COVID-19 pandemic – despite the significant monetary and fiscal stimulus measures enacted the path to economic recovery remains unclear at best
- The rand (-3.9% vs the US dollar) weakened more as the economic shock of the extended lockdown compounds South Africa’s structural growth challenges – S&P downgraded SA debt further into sub-investment grade on forecasts of accelerating deterioration of public finances
The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.35% annual fee is levied in the Foord International Fund.
WHAT IF YOU HAD INVESTED WITH US IN THE PAST?
Experience the compounding phenomenon of a sustained, long-term investment with Foord.